With the next recession on the horizon, the Fed is scrambling to prepare the economy. But the strategy they’re considering will take us into uncertain territory…

Peter Reagan, December 30, 2017

Before the next severe downturn comes, the Fed recognizes they need to get ready. But with interest rates near 0% today, they won’t be able to rely on cutting rates when things get bad. So now, they’re considering something a little drastic…

Typically, the Fed targets a specific rate of inflation. But now there’s talk of “price-level targeting”, in which the Fed would target a specific price level instead and allow inflation to run too high for a time.

Here’s the catch…

The Risk of Price-Level Targeting

This strategy is relatively untested and has not been adopted in 85 years, when it failed in Sweden. Additionally, Chicago Fed President Charles Evans has characterized this tactic as “extreme” and “too difficult to undertake during an economic crisis”.

Yet this strategy is on the table – a clear indication that the Fed can’t fix the next economic crisis with their regular tactics.

In fact, things are so bad, the Fed is willing to experiment with the economy.

How to Hedge Against the Risk

As the Fed considers going “mad scientist” on our economy, do you want your savings exposed? What about your IRA or 401(k) – can you risk your nest egg to the whims of these bureaucrats?

Don’t let the Fed gamble with your money. Instead, consider moving your wealth into something that’s been proven, time and time again, to protect your hard-earned money in times of economic uncertainty: physical gold.